Tech Giants: Starting from Bankrupt Companies

51: Chapter 51: At the Beginning of the New Year, a Storm of SanctionsThe spring of 2017 did not bring much warmth to Spark Group. Just as March arrived, a long-brewing and meticulously planned cold current swept in from across the ocean with thunderous force.

March 3rd, Washington D.C.

The United States Department of Commerce held a high-profile press conference. A cold-faced secretary stood behind the podium, reading out a sanctions list dozens of pages long in a flat tone. This list was almost a custom-made noose for Spark Technology.

“Based on the urgent need to maintain national security and foreign policy, and following an interagency joint assessment,” the secretary’s voice echoed globally through the microphone, “the Chinese Spark Group (Spark Group) and its primary affiliates—including but not limited to Spark Power, Xinghuo Chip, Xingchen Heavy Industry, and Spark-Arab Defense Company—are officially being added to the ‘Entity List’.”

As soon as these words were spoken, the room erupted in an uproar, even though many had long expected it.

The sanctions measures were specific and ruthless:

* **Total Market Ban**: All Spark Group products are prohibited from being sold, operated, or even provided with technical services in the U.S. market. Simultaneously, the United States is strongly urging and pressuring its allies—including major developed economies like the European Union, the United Kingdom, Canada, Australia, Japan, and South Korea—to take synchronized action. Overnight, Spark Technology’s revenue in core overseas consumer markets like North America and Europe plummeted to zero.

* **Technical Lockdown and Supply Cutoff**: The United States and its allies are implementing the strictest technical and equipment embargoes on Spark. The targets are the very foundations of Spark’s survival and development: high-end EDA (Electronic Design Automation) software for chip design, special composite materials and high-performance alloys for high-end machine tools and drone structures, and advanced chip manufacturing equipment and key components for processes at 7nm and below.

* **Long-arm Jurisdiction and Isolation**: The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued formal notices to all multinational corporations worldwide doing business with Spark, threatening them with “secondary sanctions.” If they continue to cooperate with Spark, they face the immense risk of being excluded from the American financial system. This move is intended to completely sever Spark’s connection to the international industrial chain.

When the news reached China, it was like pouring ice water into a boiling vat of oil.

The capital markets were the first to react. On March 4th, when the A-share market opened, despite signs of the National Team supporting the market, Spark Technology’s stock price still dropped sharply, at one point falling by more than 8%. Panic began to spread.

“It’s over, they’re playing for keeps this time!”

“All the major global markets are gone; how can we even play anymore?”

“Technical lockdowns and material supply cutoffs—this is a total strike at the roots!”

Some customers with close ties to international markets, such as component manufacturers supplying global automotive giants, began calling Spark Power under immense pressure. They spoke with difficulty, stating they needed to “re-evaluate their cooperation” or even directly canceling some orders.

Mainstream domestic media quickly followed up with reports, unanimously condemning this bullying behavior, but anxiety still permeated the internet. Spark Technology, a national enterprise that had just displayed supreme glory at its annual meeting, seemed to be pushed to the edge of a cliff in an instant.

Spark Technology Headquarters, Strategic Command Center on the top floor.

On the massive circular screen wall, real-time stock price fluctuations of major global markets, summaries of feedback from affected customers, and detailed analyses of the sanctions clauses were displayed. The atmosphere was so heavy it felt like water could be wrung from the air. All core executives and the general managers of the six major subsidiaries were connected to the meeting, either in person or online.

Su Chen sat in the primary seat, showing no trace of panic. He possessed an extreme calmness, as if the torrential waves outside had nothing to do with him. His gaze swept across every face on the screen—some solemn, some angry, some resolute.